Investing.com — SK hynix shares fell 6.3% in morning trading to reach $141.5, pulled lower by a sector-wide memory chip selloff ignited after rival reported after-hours earnings on Wednesday evening that beat revenue and profit expectations but issued forward guidance whose midpoint fell short of analyst estimates. , which also reported the same night, saw its own shares tumble sharply in after-hours despite beating consensus figures, reinforcing investor anxiety that the memory upcycle’s pace may be decelerating relative to elevated expectations.
The decline in ’s U.S.-listed ADR was amplified by a severe overnight session in Seoul, where the company’s Korean shares dropped roughly 10% amid heavy foreign selling. The stock briefly touched South Korea’s 30% daily limit-down threshold in the Nextrade alternative premarket system after only 11 shares changed hands, reigniting criticism that the thinly traded venue can trigger outsized and misleading price signals. Adding to investor unease, reports emerged that SK Hynix’s wholly owned NAND subsidiary Solidigm has formally launched a pre-IPO fundraising process targeting up to approximately $7 billion ahead of a planned Nasdaq listing — a development that raised dilution concerns for parent company shareholders, though SK Hynix later clarified no final decision had been made.
The broader U.S. market offered little support for the move, with the Nasdaq Composite essentially flat on the day and the S&P 500 barely positive, underscoring that today’s pressure on is sector- and company-specific rather than macro-driven. The prior session had already seen semiconductor names retreat amid profit-taking, and the weak memory guidance from SanDisk extended that rotation. , another direct peer, was also lower in pre-market trading, confirming the contagion across the memory space.
Despite the session’s sharp decline, the broader analyst community remains constructive on SK Hynix’s long-term positioning, with multiple Wall Street firms carrying buy ratings and price targets well above current levels, citing the company’s dominance in high-bandwidth memory and a supply shortage expected to persist through 2027. Today’s move leaves SKHY trading well below its 52-week high of $194.8, though still above its 52-week low of $124.8, as investors weigh near-term guidance disappointments against a still-robust structural demand backdrop for AI memory.
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